Shophouses come under the spotlight again

THE recent property cooling measures have once again diverted the spotlight from the private residential market to the shophouse market.

Shophouse clusters can be classified into two main submarkets. Those in the central business district (CBD) are in areas such as Chinatown, Tanjong Pagar, Upper Circular Road and Boat Quay, while the rest are farther out in places like Kampong Glam, Little India, Balestier, Geylang, Joo Chiat and Tiong Bahru.

Most CBD shophouses are in historic districts and governed by strict conservation guidelines. These shophouses are usually deemed as core assets due to their central locations, historic value and stable cashflows. Unlike the private residential market, the commercial shophouse market has largely been spared from heavy acquisition taxes.